231 Butterflies

Discussion in 'Options' started by Corto, Feb 15, 2019.

  1. Corto

    Corto

    Destriero,
    Thank you for all the good intentions and effort, but for the life of me I can’t even figure out the call fly. Can’t tweak it to have delta neutral at 10 points above body strike, not even at current SPX spot.

    Adding to the puzzle, I don’t know how these two phrases can describe the same situation:

     
    #41     Feb 19, 2019
  2. destriero

    destriero

    The former was a typo. The bearish call fly trading at neutrality UNDER the body strike.
     
    #42     Feb 19, 2019
  3. ironchef

    ironchef

    Thank you both for taking the time to post your comments. Very helpful. :thumbsup:
     
    #43     Feb 25, 2019
  4. Corto

    Corto

    Ironchef, no need to include me in the list. I don't deserve it. I kept twisting my mind trying to figure out what Destriero was saying, but no way to solve it and gave up.
     
    #44     Feb 25, 2019
  5. TheBigShort

    TheBigShort

    Dest, do you follow a sticky strike or sticky delta model? You have mentioned it to me before but i can not find it. Thanks
     
    #45     Feb 25, 2019
  6. destriero

    destriero

    Yes.


    lol I favor SS.
     
    #46     Feb 25, 2019
  7. @destriero
    Just wondering if you trade flies regularly [and profitably]? I tried trading them for a couple months using IB, but I never got filled on their spread trader. Maybe I was not being forgiving enough on my bids and asks.
     
    #47     Feb 26, 2019
  8. temnik

    temnik

    When I think of a 1-3-2 fly, to me it seems to be either of:
    • regular 1-2-1 fly minus a vertical spread
    • difference of two 1:2 verticals
    All of the above are popular combinations. Do you like to peel off parts of 1-3-2 as time progresses?
     
    #48     Feb 26, 2019
  9. destriero

    destriero

    Yeah, it's 30-40% of my trading and I am up on the year. You're not going to be filled at mid. It's hard to address fills without specifics.
     
    #49     Feb 26, 2019
  10. destriero

    destriero


    A 132 call fly is a synthetic bull put vertical and a two lot bear put vertical, ascending strikes.
     
    #50     Feb 26, 2019